FYI: Some economists are casting doubt on the effectiveness of changes that the Federal Reserve is considering about the way it measures inflation. Bond investors are paying close attention anyway.
For readers who aren’t avid Fed watchers, the U.S. central bank is formally evaluating its strategies this year to make monetary policy more potent. One possible change would allow the Fed to measure average inflation over a longer period to determine how far the economy is from achieving its longer-term 2% goal for inflation. Such a practice would encourage the Fed to keep rates lower during expansions to make up for inflation shortfalls during and after recessions.
Regards,
Ted
https://www.barrons.com/articles/how-a-shift-in-the-feds-inflation-policy-could-affect-bond-investors-51573850351?mod=djem_b_Weekly Feed for Barrons Magazine
